Sonic Automotive — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues reached an all-time record of $4.0 billion, up 0.4% year-over-year.
• Total gross profit hit an all-time record of $617.5 million, up 0.3% year-over-year.
• Reported net income was $41.1 million, a 12% decrease year-over-year; diluted earnings per share were $1.28, down 4% year-over-year.
• Adjusted net income was $41.9 million, down 15% year-over-year; adjusted diluted earnings per share were $1.30, down 8% year-over-year.
• Total reported SG&A expenses as a percentage of gross profit were 75.6% (75.7% for Franchised Dealerships, 82.1% for EchoPark, and 60.7% for Powersports).
• Total adjusted SG&A expenses as a percentage of gross profit were 75.4% (75.6% for Franchised Dealerships, 81.1% for EchoPark, and 60.7% for Powersports).
• EchoPark segment revenues were $596.0 million, up 14% year-over-year, with record segment gross profit of $58.9 million, up 8% year-over-year.
• EchoPark segment reported income was $2.0 million, down 23% year-over-year; adjusted segment income was $2.6 million, down 4% year-over-year.
• EchoPark segment adjusted EBITDA was $7.9 million, down 4% year-over-year.
• Powersports segment achieved all-time record quarterly revenues of $113.7 million, up 35% year-over-year, and all-time record quarterly gross profit of $29.3 million, up 26% year-over-year.
• Powersports segment income was $7.9 million, up 1% year-over-year, with adjusted EBITDA of $10.5 million, up 4% year-over-year.
• Franchised Dealerships same-store revenues decreased 2% and same-store gross profit decreased 1%.
• Franchised Dealerships same-store retail new vehicle unit sales volume decreased 7%; same-store retail new vehicle gross profit per unit was flat at $3,000.
• Franchised Dealerships same-store retail used vehicle unit sales volume increased 3%; same-store retail used vehicle gross profit per unit decreased 3% to $1,506.
• Franchised Dealerships same-store Fixed Operations gross profit increased 1%, with a gross profit margin up 20 basis points to 51.4%.
• Franchised Dealerships same-store F&I gross profit was flat, with F&I gross profit per retail unit of $2,630, up 2%.
• Franchised Dealerships had 65 days' supply of new vehicle inventory and 34 days' supply of used vehicle inventory on a trailing quarter cost of sales basis.
• EchoPark had 41 days' supply of used vehicle inventory on a trailing quarter cost of sales basis.

Business Segments and Product Lines:

• EchoPark retail used vehicle unit sales volume increased 22% year-over-year to 19,923 units.
• EchoPark total combined gross profit per unit was $2,972, down 12% year-over-year.
• Powersports segment achieved record unit sales volume during the 86th Annual Sturgis Motorcycle Rally.
• EchoPark announced a new brand campaign and an Orlando market opening in the coming weeks.
• Powersports segment reported the seamless integration of recent acquisitions into the Sonic Powersports family.
• Franchised Dealerships same-store Fixed Operations customer pay gross profit was flat.
• Franchised Dealerships same-store Fixed Operations warranty gross profit increased 1%.

Management Commentary and Tone:

• Chairman and CEO David Smith stated that revenue and gross profit growth in EchoPark and Powersports offset declines in the Franchised Dealerships segment, driving all-time record consolidated results.
• Management expressed confidence in long-term opportunities across businesses and a focus on providing a world-class guest experience to support sustainable earnings growth and stockholder value.
• President Jeff Dyke noted a challenging consumer affordability environment for the Franchised Dealerships segment but emphasized strengthening performance and expense leverage opportunities.
• Dyke highlighted EchoPark as a significant strategic growth opportunity following 22% used vehicle unit volume growth.
• CFO Heath Byrd stated the company is prioritizing improved expense leverage in the near term while maintaining strategic investments for future profitability and operational efficiency.
• Management emphasized disciplined capital allocation, evaluating growth investments and capital returns against expected returns and liquidity needs.

Other Key Points:

• The Board of Directors approved a quarterly cash dividend of $0.41 per share, payable on January 15, 2027, to stockholders of record on December 15, 2026.
• The company was recognized by Newsweek as one of America's Most Trustworthy Companies in 2026.
• Sonic Automotive operates a network of 174 automotive and powersports franchises in 146 locations across 90 cities and 21 states.
• The company represents 24 automotive and 15 powersports brands.
• Forward-looking statements in the release address risks including tariffs, economic conditions, supply chain disruptions, labor shortages, inflation, interest rate changes, and cybersecurity incidents.